The Southern Cross Media Group Ltd (ASX: SXL) share price has risen 1.0% in early morning trade to $1.172. By comparison, the All Ordinaries (Index: ^AORD) (ASX: XAO) is up 0.5%.
The regional TV broadcaster has seen its share price soar by 29% in the past month, as media reform looks more likely under the current Federal government. The reform package is expected to remove the 75% reach rule – which prevents free-to-air television companies from broadcasting to more than 75% of Australia's population.
Prime Minister Malcolm Turnbull labelled the reach rule 'out of date' last year when he was still Communications Minister.
That could see the metro broadcasters Nine Entertainment Holdings Co Ltd (ASX: NEC), Ten Network Holdings Ltd (ASX: TEN) and Seven West Media Ltd (ASX: SWM) merge with regional broadcasters, including Southern Cross and Prime Media Group Limited (ASX: PRT).
The Australian also reports that the two-out-of-three cap that limits deals between print, radio and free-to-air networks are also likely to be scrapped. That could see the likes of Fairfax Media Limited (ASX: FXJ), News Corp (ASX: NWS) and APN News and Media Limited (ASX: APN) play a part in the further consolidation of the media sector.
Southern Cross carries Channel Ten programming, but the company also has interests in radio and digital, and appears the most likely target for the Ten Network.
Should the media reforms go ahead without any restrictions, Southern Cross's share price could soar from here.
